Driving Sales Expansion in Global Markets

「This investment will be made in the United States, Brazil, Japan and India, with operations scheduled to begin sequentially from the second half of FY2028.」

「The operating structure of the optical fiber and cable business was overhauled, integrating operations in each region. Under the new Lightera brand, a structure for integrated global management was established to enable efficient and rapid decision-making.」

「In addition, to steadily capture growing demand, we revamped the operating structure of the optical fiber and cable business and pursued earnings growth by operating the business under a globally unified strategy that enabled efficient and rapid decision-making.」

「In the Information and Communications Solutions business, profit increased due to higher sales of data center-related products and other offerings.」

「In the Information and Communications Solutions business, the company sought to increase revenue by expanding its product lineup, including high-value-added products such as rollable ribbon cables, and strengthening its supply structure against a backdrop of growth in the data center and AI-related markets.」

「In the Information and Communications Solutions business, telecom-related orders stagnated, but profit increased due to higher sales of data center-related products and other offerings.」

「In the Information and Communications Solutions business, optical fiber and other products posted lower revenue due to weak demand resulting from restrained customer investment and other factors. Although automotive parts such as wire harnesses posted higher revenue in the Electrical and Electronics business, group-wide revenue declined. On the earnings front, despite efforts including appropriate pricing, profit declined due to lower revenue and higher raw material and fuel prices.」

「In the Information and Communications Solutions business, profit-enhancing factors included appropriate pricing, fixed-cost reductions and increased orders due to a recovery in demand related to data centers. However, profit declined due to restrained investment by customers in North America and Central and South America, prolonged inventory adjustments, project delays and productivity impacts from lower operating volumes, as well as higher raw material and fuel prices.」

「In the Information and Communications Solutions business, profit-enhancing factors included appropriate pricing and fixed-cost reductions. However, profit declined due to customers in the fiber and cable and optical device businesses restraining investment, prolonged inventory adjustments, project delays and productivity impacts from lower operating volumes, as well as higher raw material and fuel prices. As a result, segment revenue was ¥134.8 billion, down 15.7% year on year, and the operating loss was ¥8.7 billion, a ¥11.2 billion deterioration from the previous year.」

「In the Information and Communications Solutions business, profit-enhancing factors included appropriate pricing, productivity improvements and expanded sales of high-value-added products. However, profit declined due to lower revenue caused by inventory adjustments by North American customers and project delays, lower revenue resulting from reduced investment by Brazilian telecom operators, and higher raw material and fuel prices.」

「In addition to expanding overseas sales of conventional optical communications products, we will accelerate the expansion into North America, Europe and Asia of our networking systems business, currently operated in Latin America, which provides a comprehensive range of services including product sales such as optical fiber cables, network design and operational support, and after-sales service.」

「In the information and communications solutions business, results were affected by continued increases in raw material and fuel prices, lower sales of domestic network-related products due to worsening semiconductor procurement difficulties and higher prices, and lower optical cable sales to Europe due to the situation in Russia and Ukraine. However, profit increased because of higher sales of optical cables and networking systems in North America, including a higher proportion of high-value-added products, price pass-through for higher raw material and fuel costs, improved productivity at North American optical cable operations, and foreign exchange effects as the yen weakened.」

「Profit increased due to higher sales of optical cables and networking systems in the Americas, including a higher proportion of high-value-added products, price pass-through for higher raw material and fuel costs, improved productivity at North American optical cable operations, and foreign exchange effects. As a result, segment sales were ¥159.8 billion, up 11.8% year on year, and operating income was ¥2.5 billion, up 62.3%.」

「In the information and communications solutions business, results were affected by higher raw material and fuel prices, supply chain issues related to materials procurement, and lower optical cable sales to Europe due to the situation in Russia and Ukraine. However, profit increased because of price pass-through for higher raw material and fuel costs, higher sales of optical cables and networking systems in the Americas, including a higher proportion of high-value-added products, improved productivity at North American optical cable operations, and strong performance by specialty fibers, mainly for medical applications.」

「Overseas sales were ¥469.0 billion, up 24.6% from the previous fiscal year, and the overseas sales ratio was 50.4%, up 4.0 percentage points.」

「In the information and communications solutions business, sales of North American optical cables, South American FTTH and LAN solutions increased, and productivity at North American optical cable operations improved, but results were affected by lower sales of bare fiber to North American customers and higher raw material and transportation costs. Meanwhile, the overseas submarine cable business, domestic underground cable projects and the Chinese subsidiary in the Energy Infrastructure business remained broadly on track. As a result, segment sales were ¥217.3 billion, up 17.3% year on year, and operating income was ¥2.3 billion, an improvement of ¥6.0 billion from the previous year.」

「In the information and communications solutions business, sales of North American optical cables, South American FTTH and LAN solutions increased, and productivity at North American optical cable operations improved, but results were affected by raw material shortages, higher raw material and transportation costs, and lower demand due to customer inventory adjustments for digital coherent products. Meanwhile, the overseas submarine cable business, domestic underground cable projects and the Chinese subsidiary in the Energy Infrastructure business progressed as expected. As a result, segment sales were ¥142.9 billion, up 17.0% year on year, and operating income was ¥1.5 billion, an improvement of ¥3.2 billion from the previous year.」

「In the information and communications solutions business, sales of North American optical cables, South American FTTH and LAN solutions increased, and productivity at North American optical cable operations improved. However, profit remained sluggish because of raw material shortages and higher raw material and transportation costs, a temporary decline in sales volumes of optical fiber strands to North American customers, and customer inventory adjustments for digital coherent products.」

「In the information and communications solutions business, demand for optical fiber and other products in North America remained solid, but severe competitive conditions persisted. In addition to lower sales of network-related products and industrial lasers due to restrictions on domestic construction starts and customer investment caused by COVID-19, the business was affected by foreign exchange movements, mainly in South America, resulting in lower sales and profit.」

「In the information and communications solutions business, demand for optical fiber and cable in North America remained solid and supply capacity for digital coherent products improved, but severe competitive conditions for optical fiber and cable continued. In addition, customer restraint on capital investment due to COVID-19 led to lower sales of domestic network-related products, industrial lasers, and specialty fiber for medical, industrial and other applications. As a result, segment sales were ¥185.3 billion, down 9.2% year on year, and the segment posted an operating loss of ¥3.7 billion, a deterioration of ¥4.0 billion from the previous year.」

「In the information and communications solutions business, demand for optical fiber and cable in North America remained solid, but prices for optical fiber and cable continued to decline worldwide, and COVID-19 also led to lower operating rates at North American optical cable facilities.」

「In the information and communications solutions business, competitive conditions remained severe in Latin America, Europe and Asia, and sales declined partly because of lower demand caused by COVID-19. However, steady demand for optical fiber and cable in North America and higher revenue from improved supply capacity for digital coherent products contributed to profit.」

「In the information and communications field, the supply-demand balance has temporarily deteriorated because of increased global optical fiber production, although communications traffic continues to grow. We will continue to promote productivity improvements for optical fiber and cable at our U.S. subsidiary and strengthen fundamental cost competitiveness by achieving optimal-location production across the Group, while expanding sales of high-value-added products such as high-density, high-count optical cables.」

「In the information and communications solutions business, sales declined because we did not readily follow price declines for optical fiber and cable products, mainly in Europe and Asia, while delayed productivity improvements at North American optical cable operations also resulted in lower Infrastructure segment profit year on year.」

「In the information and communications solutions business, sales of digital coherent products increased, but profit was pressured by lower sales resulting from intensified price competition for optical fiber and cable products in Europe and Asia and delays in improving productivity at North American optical cable operations.」

「In the information and communications solutions business, strong performance in the Latin American solutions business and higher sales of digital coherent products were offset by intensified optical fiber price competition in Europe and Asia, delays in realizing the benefits of increased optical fiber production in North America, and delays in responding to increased optical cable production, which pressured profit. As a result, segment sales were ¥67.7 billion, down 0.8% year on year, and the segment posted an operating loss of ¥0.4 billion, a deterioration of ¥2.2 billion from the previous year.」

「In the information and communications solutions business, sales remained sluggish because recovery in North American demand for optical fiber and cable was delayed by investment restraint among major customers.」

「In the information and communications solutions business, domestic network systems remained strong, but recovery in the North American optical cable business is taking time, while the transition to next-generation products such as integrated signal light sources has been delayed. In addition, competitive conditions for optical fiber and optical cables are deteriorating.」

「In the Infrastructure segment, the power business has been laying the groundwork for steady growth, but performance remains sluggish. The optical cable business in North America is also still recovering, resulting in lower profit than in the previous year.」

「Global demand for optical fiber remained strong and the Group's shipment volume increased steadily, while we also captured increased demand for domestic network systems. However, the optical cable business in North America is still recovering, recovery in businesses such as integrated signal light sources is taking time because of inventory adjustments in the Chinese market, and fixed costs including depreciation and R&D expenses increased. As a result, segment sales were ¥68.3 billion, down 2.4% year on year, and operating income was ¥1.8 billion, down 53.1%.」

「In the information and communications field, in addition to working to strengthen our global production and supply system, we decided to make capital investments to meet strong global demand for optical fiber.」

「Although the power business remained sluggish, the decline in revenue from integrated signal light sources widened as the adjustment in the Chinese market continued, and sales of optical cables in North America temporarily declined, higher sales driven by strong demand for domestic network systems resulted in segment sales of ¥216.6 billion, up 15.6% year on year, and operating income of ¥9.8 billion, up 15.1%.」

「Although the prolonged adjustment in the Chinese market for integrated signal light sources widened the decline in revenue, strong demand for optical fiber and cable products and domestic network systems, as well as solid domestic power construction activity, resulted in segment sales of ¥140.9 billion, up 15.0% year on year, and operating income of ¥8.0 billion, up 49.4%.」

「Demand was generally strong, as the Infrastructure segment's optical fiber and cable business in Europe and the United States and the Functional Products segment's copper foil business remained robust, while the Electrical and Electronics segment's automotive components business recovered from lower domestic automaker production, including the impact of the Kumamoto earthquake last year. Sales rose 14.7% year on year to ¥224.9 billion, and operating income rose 123.0% to ¥10.4 billion.」

「We are promoting a global area strategy that divides the world into 5 regions and develops sales expansion strategies tailored to the characteristics of each region. As the first stage, we will establish hubs covering China and Southeast Asia to coordinate the Group's marketing activities in each region, including the collection and analysis of market and customer information and its dissemination to business divisions.」

「In addition to strong demand for optical cables and integrated signal light sources in Europe, the United States and China, the partial withdrawal from low-profit businesses contributed to segment sales of ¥187.4 billion, up 0.7% year on year, and operating income of ¥8.5 billion, up 109.8%.」

「Despite the negative impact of the stronger yen, including on domestic fiber exports, strong demand for optical cables and integrated signal light sources in Europe and the United States resulted in segment sales of ¥122.5 billion, down 0.6% year on year, and operating income of ¥5.3 billion, up 115.4%.」

「Supported by strong demand for optical cables and integrated signal light sources in Europe and the United States, segment sales were ¥61.8 billion, up 3.1% year on year, and operating income was ¥2.3 billion, up 444.0%.」

「To accelerate sales growth in global markets, we will establish overseas regional headquarters, strengthen our ability to gather information locally, and build an organization capable of rapidly and appropriately executing marketing and sales strategies tailored to the characteristics of each region.」